Identify the businesses the company is in (or considering entering), how they are related (or unrelated), and whether and how they create additional value in their combination. Be specific and detailed. If it is unclear that value is created, try to asses why the firm might have chosen to enter those businesses.
Nokia currently is in the telecommunications solutions business which include the following industries: (1) mobile device manufacturing, (2) mobile device communication, (3) mobile device accessories and (4) applications for mobile devices. These four industries are all equally related to one another. In the beginning of the mobile device industry for Nokia, the company focused strictly on the manufacturing of mobile devices. These mobile devices were standard and did not offer any of the extra applications or features that the company currently offers. In order for Nokia to sustain their competitive advantage within the industry, the company had to create additional value-added features and services to its mobile device industry. These additional features include cameras on the phones, internet capabilities/email, maps, gaming applications,media sharing, video and music. All of the many features create value for consumers by providing convenience, simplification and the ability to stay connected. A few examples include: (1) the maps can help people navigate through a new area that they are unfamiliar with, (2) the internet and email features allow consumers to easily stay associated with their many connections throughout the world and (3) media sharing has also created value for consumers by being able to transfer files between mobile devices, which can be especially useful for international business associates needing to get an important contract signed immediately. Nokia added these additional services and features to be able to stay in line with their vision, which involves a world where everybody is connected. (www.nokia.com)
Identify and analyze the methods of entry the firm has used to enter those businesses. Were the methods of entry used (or proposed) the best choice given the firm's objectives, environment, strengths, weaknesses, and strategy? Be sure to include any appropriate financial analysis to support your assessment.
Nokia has used mergers, acquisitions, and joint ventures throughout their history to gain the competencies needed to provide consumers with high-quality products. One of the major acquisitions took place in 2008, where Nokia bought out the remaining 52% of Symbian that it did not already own. Symbian provided the operating system that is used on most mobile devices manufactured by Nokia. With the acquisition, Nokia's CEO Olli-Pekka Kallasvuo hoped to develop even more advanced web-enabled applications for their mobile devices. The operating system is open source, which allows for the modification of applications to create custom-designed software to meet individual consumer needs. Through additional modifications, the software and applications become easier to use and also more reliable, creating value for customers. (http://www.howstuffworks.com/question435.htm) (http://conversations.nokia.com/2008/06/24/nokia-to-acquire-symbian-make-it-open-source/)
An important 50-50 joint venture took place between Nokia and Siemens in June 2006. The two companies merged the Networks Business Group of Nokia and the carrier-related operations of Siemens to form a new company called Nokia Siemens Networks. This new company can develop both revenue-generating and cost-saving products as it has one of the world's best R&D teams. The joint venture has allowed Nokia to provide customers with new and improved technologies and services, as well as increased telecommunication equipment. (http://www.nokia.com/press/press-releases/archive/archiveshowpressrelease?newsid=1057716)
The methods of entry Nokia used has allowed them to maintain their number one market share position in the telecommunications manufacturing industry. The joint venture with Siemens identified with Nokia's strength of R&D, allowing the company to position themselves with one of the best R&D teams in the world. With better research and development opportunities, Nokia will be able to maintain and/or grow their global market share. A weakness of Nokia is the declining market share of the smartphone due to the increased competition from Apple (iPhone) and RIM (Blackberry). However, the acquisition of Symbian provides the opportunity for them to increase the capabilities and features of their smartphones. Nokia's overall strategy is to help people everywhere stay connected, and through the use of their mergers and acquisitions they are building their competencies enabling them to offer consumers products that will meet their telecommunications needs. (http://callisto.ggsrv.com/imgsrv/Fetch?banner=4ba64971&digest=7229154b9681180f274dfc3b145b39ee&contentSet=SWOT&recordID=474629_GMDTC31829FSA)
Nokia currently is in the telecommunications solutions business which include the following industries: (1) mobile device manufacturing, (2) mobile device communication, (3) mobile device accessories and (4) applications for mobile devices. These four industries are all equally related to one another. In the beginning of the mobile device industry for Nokia, the company focused strictly on the manufacturing of mobile devices. These mobile devices were standard and did not offer any of the extra applications or features that the company currently offers. In order for Nokia to sustain their competitive advantage within the industry, the company had to create additional value-added features and services to its mobile device industry. These additional features include cameras on the phones, internet capabilities/email, maps, gaming applications,media sharing, video and music. All of the many features create value for consumers by providing convenience, simplification and the ability to stay connected. A few examples include: (1) the maps can help people navigate through a new area that they are unfamiliar with, (2) the internet and email features allow consumers to easily stay associated with their many connections throughout the world and (3) media sharing has also created value for consumers by being able to transfer files between mobile devices, which can be especially useful for international business associates needing to get an important contract signed immediately. Nokia added these additional services and features to be able to stay in line with their vision, which involves a world where everybody is connected. (www.nokia.com)
Identify and analyze the methods of entry the firm has used to enter those businesses. Were the methods of entry used (or proposed) the best choice given the firm's objectives, environment, strengths, weaknesses, and strategy? Be sure to include any appropriate financial analysis to support your assessment.
Nokia has used mergers, acquisitions, and joint ventures throughout their history to gain the competencies needed to provide consumers with high-quality products. One of the major acquisitions took place in 2008, where Nokia bought out the remaining 52% of Symbian that it did not already own. Symbian provided the operating system that is used on most mobile devices manufactured by Nokia. With the acquisition, Nokia's CEO Olli-Pekka Kallasvuo hoped to develop even more advanced web-enabled applications for their mobile devices. The operating system is open source, which allows for the modification of applications to create custom-designed software to meet individual consumer needs. Through additional modifications, the software and applications become easier to use and also more reliable, creating value for customers. (http://www.howstuffworks.com/question435.htm) (http://conversations.nokia.com/2008/06/24/nokia-to-acquire-symbian-make-it-open-source/)
An important 50-50 joint venture took place between Nokia and Siemens in June 2006. The two companies merged the Networks Business Group of Nokia and the carrier-related operations of Siemens to form a new company called Nokia Siemens Networks. This new company can develop both revenue-generating and cost-saving products as it has one of the world's best R&D teams. The joint venture has allowed Nokia to provide customers with new and improved technologies and services, as well as increased telecommunication equipment. (http://www.nokia.com/press/press-releases/archive/archiveshowpressrelease?newsid=1057716)
The methods of entry Nokia used has allowed them to maintain their number one market share position in the telecommunications manufacturing industry. The joint venture with Siemens identified with Nokia's strength of R&D, allowing the company to position themselves with one of the best R&D teams in the world. With better research and development opportunities, Nokia will be able to maintain and/or grow their global market share. A weakness of Nokia is the declining market share of the smartphone due to the increased competition from Apple (iPhone) and RIM (Blackberry). However, the acquisition of Symbian provides the opportunity for them to increase the capabilities and features of their smartphones. Nokia's overall strategy is to help people everywhere stay connected, and through the use of their mergers and acquisitions they are building their competencies enabling them to offer consumers products that will meet their telecommunications needs. (http://callisto.ggsrv.com/imgsrv/Fetch?banner=4ba64971&digest=7229154b9681180f274dfc3b145b39ee&contentSet=SWOT&recordID=474629_GMDTC31829FSA)